Once some stability is added to the market, E&Ps with capital and the appetite for deals should see opportunities materialize, a recent Enverus report says.
The industry’s ‘we’ve got this’ mentality shifts to survival mode as it tackles an enormous body of uncertainty-infused challenges, including prices, demand, storage, upended deals and layoffs.
There’s a debate on the degree of synergies realized in M&A between oil and gas companies. Commodity volatility hasn’t helped.
EnCap Investments pulled off a rarity in the U.S. shale business earlier this month with the sale of Felix Energy to rival WPX. However, EnCap's big payday proved short-lived.
A wounded oil and gas industry enjoys better numbers the day after prices plummeted, but steep debt will likely bring about a wave of M&A, bankruptcies and litigation.